Multinational - Natixis Risk Participation Agreement

The present project is a risk-sharing mechanism worth USD 100 million, shared equally between the African Development Bank and Natixis. It aims to provide guarantees to Natixis for trade financing in Regional Member Countries (RMCs). Under this agreement, Natixis will make available to African local banks resources intended for the trade financing and thus guarantee their financing commitments and, more precisely, confirm their letters of credit. The AfDB will guarantee up to 50% of the value of these transactions in the event of default by these local issuing banks (IBs). This mechanism will be used to secure obligations resulting from trade finance instruments such as credit confirmation and acceptance letters, export (pre-shipment) loans, import loans, export and import invoices, vouchers and guarantees, etc. The Risk Participation Agreement (RPA) will cover a three-year period and the maturity for the underlying transactions will not exceed 2 years. Natixis is the corporate and investment bank of Groupe BPCE (BPCE Group), the second largest banking player in France. It is present in 36 countries and employs more than 15 000 people.